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Committee delays short‑term rental memorial after wide public comment and requests for clearer definitions
Summary
House Memorial 52, which would establish a working group to study short‑term rentals’ economic, housing and tax impacts, drew extensive public testimony and questions about definitions and scope; sponsors agreed to roll the memorial to allow amendments and inclusion of additional agencies.
Representative Henry introduced House Memorial 52 to establish a short‑term rental work group to study taxation, economic contributions, workforce housing impacts and regulatory frameworks across New Mexico. The memorial would also ask county assessors to suspend reclassification of short‑term rentals as nonresidential until the study is complete.
"The memorial requests the establishment of a short‑term rental work group to study the economic contributions, workforce housing benefits, taxation policies, and regulatory framework of short‑term rentals across New Mexico," Representative Henry said in her presentation.
Expert testimony and public comment emphasized the practical impacts of recent assessor decisions. Carl Bedell, identified as an expert witness, estimated there are approximately 14,000 short‑term rentals in New Mexico and said his assessment indicates about 7,200 of those properties face reassessment; of those, Bedell said roughly 5,100 are owner‑occupied for a large portion of the year. Bedell warned reassessment to nonresidential classifications could trigger mortgage covenant issues for some homeowners, which he described as a "doomsday scenario."
Industry groups including the New Mexico Association of Realtors, the New Mexico Short Term Rental Association, the New Mexico Association of Realtors' government affairs director, the Greater Albuquerque Chamber of Commerce, and local short‑term rental managers testified in favor of a study. David Saavedra of the New Mexico Association of Realtors said a study would ensure policy decisions are "informed, balanced, and support both our housing market and tourism industry." Chris Leslie Curtis of the New Mexico Short Term Rental Association described individual homeowners using short‑term rental income to "make ends meet," and urged the committee to authorize the study.
Committee members pressed the sponsor and witnesses on definitions and process. Representatives asked how the work group would define "short‑term rental" (witnesses said there is no statewide statutory day‑based definition and industry practice varies, including many mid‑term arrangements of 30+ days). Members also asked whether the Office of Housing, the Taxation and Revenue Department, or the Economic Development Department would be part of the work group; sponsors said they expected such agencies to participate and that an amendment could add the Mortgage Finance Authority and Office of Housing.
The memorial drew committee concern that its language presumes both economic benefits and harms without a clear definition or dedicated study funding. A member recommended rolling the memorial until the sponsor could accept amendments that would include clearer definitions and named agencies. The committee agreed to roll the memorial; the chair said the item would be set aside until those changes could be made and suggested returning on Monday with amendments.
Key numbers cited in testimony: an estimated 14,000 short‑term rental properties statewide; about 7,200 potentially subject to reassessment, with roughly 5,100 owner‑occupied most of the year; an estimate that 85% of short‑term rental properties are primarily owner‑occupied was cited by witnesses; 2023 tax receipts tied to short‑term rentals were reported as approximately $82,000,000 (gross receipts, lodging and hospitality taxes combined) by witnesses.
The committee did not advance the memorial; the item was rolled to permit sponsor amendments on definitions, agency participation and scope.
